Warning not to scrap building watchdog

The Australian Industry Group, the Business Council of Australia and the Australian Constructors Association have warned that abolishing the Australian Building and Construction Commission could increase construction costs.

In a joint submission to a Senate inquiry, the two groups said scrapping the building watchdog would revive poor practices.

“The ABCC is carrying out a vital role and is needed today as much as ever," AI Group chief executive
Heather Ridout
said.

“Unless a strong, well-resourced regulator and strong legislation is maintained, the risks associated with industrial lawlessness will again be priced into construction contracts, at great cost to project owners (including governments) and the Australian community."

BCA acting CEO Maria Tarrant said it was important there was “a strong cop on the beat".

The submission’s concerns include the lessening of penalties and investigative powers.

The criticisms from industry echo those raised by former ABCC chief John Lloyd, now a director at the Institute of Public Affairs, who said the changes would bring a “shameful" return to lawlessness that would raise costs and cut productivity.

Workplace Relations Minister
Bill Shorten
said on Friday the criticism was not surprising.